Texas CRE Foreclosures Hit $575M in October Auctions

More than $575 million in commercial real estate (CRE) loans across Texas are headed for foreclosure auctions this October.

Most of these properties are apartment complexes that took out loans in 2022 and 2023 when interest rates were lower.

Houston is the hardest hit, with 11 properties totaling nearly $270 million in debt facing foreclosure. Overall, the total for this month is slightly lower than September’s $710 million and August’s $670 million, according to Roddy’s Foreclosure Listing Service.

Houston’s Largest Foreclosures

The biggest CRE loan on Houston’s auction block is a $42 million mortgage on the 265-unit Adenine Apartments, built in 2016 and purchased by Madera Residential in 2023. The debt comes to $158,490 per unit.

Of Houston’s 11 properties, six have been on the auction block before, including:

Falls of Braeburn – 191 units, $64.5 million
Selena Apartments – 446 units, $37.9 million
Falls of Las Villas – 466 units, $33.5 million
Falls of Alta Vista – 514 units, $33.5 million
Falls of Westpark – 356 units, $29 million
The Sophia Apartments – 240 units, $17.9 million

San Antonio’s Foreclosure Spotlight

Alan Stalcup and his firm GVA face foreclosure on the Barcelo Apartments, a 288-unit complex at 3501 Pin Oak Drive. The property, built in 1972, has a $30.5 million mortgage provided by CBRE Multifamily. Debt per unit is $106,000.

Dallas and Fort Worth Properties

In Dallas, Parea Oak Lawn at 4503 Lake Avenue is facing a $25.5 million foreclosure. Owned by Sun Equity Partners, the 131-unit property built in 1970 has a debt of $194,656 per unit.

In Fort Worth, Arioso Apartments & Townhomes in Grand Prairie is also set for auction. The 288-unit property at 3030 Claremont Drive carries a $56 million loan, or $194,000 per unit.

Repeat Offenders Across Texas

Several properties are facing foreclosure for the second or third time:

Bexar County: One Technology Center ($57.75M), Aviator at Brooks ($33.9M)
Travis County: Galleria Oaks Building 2 ($16M)
Dallas County: Three Forest Drive ($57.75M)

These repeat foreclosures show ongoing challenges in the Texas multifamily market, especially among apartment complexes financed during the low-interest period of 2022–2023.

Author Profile

Saleem Mubarak: Saleem Mubarak is a journalist and real estate writer who covers Houston’s evolving property market with a sharp eye for local trends and investor dynamics. He focuses on how shifting prices, interest rates, and migration patterns shape the city’s real estate future.

He has interviewed leading real estate professionals to bring readers first-hand insights into Houston’s changing market—from rising investor activity to the influence of social media on property buying.